Line in the sand for FPA and FSC

Financial Planning Association (FPA) chief Mark Rantall (pictured) has acknowledged his association will need to maintain a close working relationship with the licensees represented by the Financial Services Council’s (FSC’s) financial advice committee, in light of recent constitutional changes by the FPA restricting licensees from being voting members.

“Advisers and their licensees are inextricably linked. We respect that linkage and we need to cooperate and collaborate around the issues that are facing the industry,” Rantall told Money Management.

The FPA is not concerned it will lose the lobbying and financial power of its licensee members, with Rantall saying the association expecting the majority of its existing principal or licensee members would transition to become non-voting members via the FPA’s new Professional Partners or Professional Practice programs.

Most of Australia’s large advice licensees are longstanding members of the FSC’s advice committee (formerly known as the Financial Advice Network) and there will now be a clear line of demarcation between the FPA and FSC in the advice arena.

Rantall said the recent changes to the FPA’s constitution, which mean only practitioners have the right to vote, would clarify the FPA’s position at the lobbying table.

“What becomes very clear is that when we’re talking to government, regulators and the general public they will know that we are representing individual practitioners and we are focused on the best interests of the public when we do that.”

Rantall said that position would also be clearer in its negotiations with licensees.

“When we’re talking to licensees, as an example, they will know that we’re coming to talk to them with the voice of the practitioner rather than the confusion of the voice of the licensee or the practitioners, or both sometimes.”